Author: admin
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What is Market Failure
What is Market Failure? In economics, Market failure occurs when there is an imbalance in the quantity of a product demanded and supplied, which leads to an inefficient allocation of resources. The success of the market is mainly dependent on the effective allocation of resources. However, there are situations when markets fail to allocate these resources efficiently, which…
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Criteria for Good Demand Forecasting
Criteria for Good Demand Forecasting Demand forecasting can be effective if the predicted demand is equal to the actual demand. The effectiveness of demand forecasting depends on the selection of an appropriate forecasting technique. Each technique serves a specific purpose; thus an organisation should be careful while selecting a forecasting technique for a particular problem. Table…
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Techniques & Methods of Demand Forecasting
What is Demand forecasting? Demand forecasting is a process of predicting the demand for an organisation’s products or services in a specified time period in the future. Table of Content [Show] Techniques & Methods of Demand Forecasting Different organisations rely on different techniques to forecast demand for their products or services for a future time period depending…
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What is Demand Forecasting
What is Demand Forecasting? Demand forecasting is a process of predicting the demand for an organisation’s products or services in a specified time period in the future. Demand forecasting is helpful for both new as well as existing organizations in the market For Example, for various needs for demand forecasting in business organizations, a new organisation needs…
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What is Market Power
What is Market Power? Market power define as the ability of an organisation to raise the market price of a good or service over marginal cost to achieve profits. It can also be defined as the degree of control an organisation has over the price and output of a product in the market. A firm with total…
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Profit Maximization
Profit Maximization Definition Profit maximization can be defined as a process in the long run or short run to identify the most efficient manner to increase profits. It is mainly concerned with the determination of price and output level that returns the maximum profit. It is an important assumption that helped economists in the formulation of various economic theories, such…
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What is Market Structures?
What is Market Structures? Market structure can be defined as a group of industries characterised by a number of buyers and sellers in the market, level and type of competition, degree of differentiation in products and entry and exit of organisations from the market. Table of Content [Show] The study of market structure helps organisations in understanding…
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What is Revenue?
What is Revenue? Revenue is the total amount of money received by an organisation in return of the goods sold or services provided during a given time period. Table of Content [Show] In other words, revenue of a firm refers to the amount received by the firm from the sale of a given quantity of a commodity…
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Economies and Diseconomies of Scale
What are Economies of scale? Economies of scale, As a firm expands its production capacity, the efficiency of production also increases. It is able to draw more output per unit of input, leading to low average total costs. This condition is termed as economies of scale. Economies of scale result in cost-saving for a firm as the…
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What is Long Run Cost?
What is Long Run Cost? Long run cost refers to the time period in which all factors of production are variable. Long-run costs are incurred by a firm when production levels change over time. In the long run, the factors of production may be utilised in changing proportions to produce a higher level of output. In…